Did Spokane Real Estate Hit Rock Bottom in 2024?

The Spokane real estate market has been on quite the rollercoaster, and 2024 brought its fair share of challenges and surprises. From stagnant home prices to fluctuating inventory levels, let’s dive into the numbers and trends that shaped Spokane real estate this year.

A Stagnant Market

For the third consecutive year, the average home price in Spokane remained unchanged, hovering around $430,000. While this provided stability for some, it also signaled a market that struggled to gain upward momentum. December closed out the year with an average home price of $425,000, marking the end of an era where Spokane homes dipped below $400,000.

Sales and Listings

• Closed Sales: A slight 3% increase in sales compared to 2023, translating to about 180 additional transactions. While this was a marginal improvement, it wasn’t enough to offset the significant inventory entering the market.
• New Listings: Over 10,300 new homes hit the market in 2024, a number reminiscent of the booming years of 2020 and 2021. However, a 4,000-home gap emerged between listings and sales, leaving unsold inventory piling up.

Cash Buyers

The proportion of cash sales dropped slightly to 17.4%, compared to 20% in 2023. With high interest rates, cash buyers remained active but fewer than expected. Those who did pay in cash likely found better value in avoiding high borrowing costs.

Pending Home Sales

Pending home sales saw a 4% increase year over year, but with 1 in 5 transactions falling through, many homes had to go back on the market before finding a buyer. This reflects buyer uncertainty and challenges with financing.

Inventory and Days on Market

• Median Days on Market: The typical home stayed on the market for about 30 days, a significant jump from the average of 6 days at the beginning of the year.
• Months Supply of Inventory: Dropped from 2.7 months to 2.2 months by the end of the year as sellers pulled their listings for winter, creating a tighter market. Despite this, the market remained a slow-paced seller’s market, with well-prepared homes selling quickly while others lingered.

What Does This Mean for Buyers and Sellers?

For sellers, 2024 was a year of adjusting expectations. Proper pricing and market-ready preparation were essential for a successful sale. Homes with minor defects or overpriced listings saw extended time on the market.
For buyers, patience was key. With more inventory and longer days on market, there were opportunities to find well-priced homes—especially for those willing to negotiate.

The Big Question: What’s Next for 2025?

As we move into 2025, the real estate market in Spokane remains a mixed bag. Will home prices finally break their three-year plateau? Will interest rates ease, bringing more buyers into the market? Only time will tell.

For predictions and insights into what 2025 might bring, make sure to check out the latest video on Spokane Real Estate Predictions for 2025. Let’s see what the future holds for this dynamic market!